Top Tips For Buying A Boca Raton Vacation Home
Posted by Roy Barbu MBA on Friday, March 24th, 2017 at 8:26am.
With sugar-white sand beaches, waving palms, world-class golf, and a vibrant nightlife, Boca Raton has a lot to offer. As such, it makes for a popular place for those looking to purchase a second home or vacation home. If you're considering investing in a Boca Raton vacation home, consider the following tips:
Why Do You Want A Vacation Home?
There are numerous reasons a person may want to invest in a Boca Raton vacation home. Perhaps you visited the city once when you were a kid and fell in love with the balmy weather, laid-back attitude, and incredible beach access. Maybe you'd like to spend a couple months each year enjoying the area. Maybe your Boca Raton home is an investment in your future, and you're hoping to retire there one day. Perhaps you're looking for a source of passive income, and you'd like to rent out a house that belongs to a desirable seaside community.
It's important to consider why you want to buy a home in Boca Raton. If you're hoping to rent out the property, consider whether or not the land is close to top tourist attractions that will make it appealing as a short-term rental. Likewise, if you'll be retiring there, would you prefer to live near the heart of the city or in a rural region?
Know The Area
Boca Raton isn't an immense network of multi-lane roadways like a major hub like Los Angeles or New York. It won't take you an hour to drive from one end of the city to the other, but location is still important, and that's why you should consider why you want a vacation home in Boca Raton.
Is your intention to golf every day? Sample each of the restaurants around the intersection of Palmetto Park Road and the Federal Highway? Or swim in the ocean every morning? These factors may greatly affect the location you choose.
While West Boca Raton is an ideal place for a golf enthusiasts because of the dozens of golf course communities in the region, it's quite far from the places where you'd dock your boat or catch a red snapper on crisp waves. If water sports are your passion, you're certain to fall in love with a home in East Boca Raton.
So, research extensively. You can browse the Community pages on our site to read comprehensive neighborhood write-ups that include information about amenities, housing types, and any other local highlights.
Research The Taxes
Even though you may be familiar with the ins and outs of owning your own home and the financial responsibilities that come with that, you might be surprised to learn that taxes on a secondary home are often not the same as the ones you can expect to see on your primary residence.
If you rent the property, the rent you take from your tenant will be considered a form of income. As such, you'll have to pay income tax on that sum. It's also worth noting that property taxes on a second home are often much higher than property taxes applied to a primary residence. Having that said, depending on whether you'll be renting the property or not, there are tax breaks you may qualify for as well.
Working with an experienced Florida real estate agent is one of the best ways to stay informed and ensure your finances are in order.
If you're only planning on using your vacation home a couple months out of the year, you might consider renting your home as a short-term rental when you won't be using it. If you contact Boca Dreams, they can give you an idea of how many months per year you can realistically expect to fill your property.
If you do some careful math and successfully rent out your home, the rent you earn should cover your mortgage payments. Do your research by looking at what similar rental properties are going for to get sense of what your property will fetch on the market. If you'll be renting from out of state, consider getting a property manager. They can help you market your rental, collect payments, and maintain the property.
Featuring the finest of South Florida luxury and Boca Raton real estate, BocaDreams is your #1 source for Boca Raton homes for sale. Register now to start your search for the luxury lifestyle you deserve!
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Featuring the finest of South Florida luxury and Boca Raton real estate, BocaDreams is your #1 source for Boca Raton homes for sale. Register now to start your search for the luxury lifestyle you deserve!Register Now